Bloomberg: Oil Firms Raise $171 Billion in Debt as Virus Hits Fuel Demand

Oil and gas companies worldwide have raised $171 billion of debt from the loan and bond markets since March after the coronavirus pandemic hit demand for fuel, writes Jacqueline Poh for Bloomberg, citing Credit Benchmark data on the deteriorating credit quality of global firms.

The energy sector remains in a precarious situation as the underlying economy remains weak and people travel far less than they used to, according to a report by financial analytics firm Credit Benchmark.”

Default risk for U.S. energy firms is deteriorating fast after credit quality worsened by 10% in last month, the report said. The credit quality score for U.K. oil and gas firms dropped by 1.9% in the month, while European companies suffered a 1.8% decline, according to Credit Benchmark.”

Bloomberg, May 29, 2020.

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